Buy this power generation stock for more than 35% upside, Goldman Sachs says
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Yahoo
8 minutes ago
- Yahoo
China unveils ambitious plans for its nuclear power capacity — here's what you need to know
China is aiming to double its nuclear energy capacity, according to Business Standard. A new report from the China Nuclear Energy Association, cited by Business Standard, said the country aims to produce 200 gigawatts of nuclear power by 2040. Currently, the country's production sits at 55 GW with 57 reactors, according to data from the International Atomic Energy Agency. There are 61 nuclear plants in construction worldwide, Goldman Sachs reported, with around half in China. For comparison, the U.S. has about 97 GW of nuclear power generation across 94 reactors, per the IAEA. Even if China hits its goals, much of its electric grid may still be powered by coal. The CNEA estimates that by the end of the 2030s, nuclear would comprise only 10% of China's energy capacity. Displacing coal is a major challenge. It is the dirtiest form of energy generation and is why China is the world's largest polluter in terms of heat-trapping pollution, per multiple sources. That being said, China has been making massive strides in renewable energy rollouts, which could mean cheaper, low-pollution energy for its citizens. Recently, combined generation from solar and wind reportedly exceeded China's coal power output. The nation is even investing in installations abroad. Nuclear power is relatively expensive to build, and reactors take a long time to get running, but the volume of zero-emission energy they produce is hard to ignore. Advancements in small modular reactors may help with spin-up time, and a recent breakthrough in thorium technology may help with safety. With its projected acceleration of nuclear energy production, China is progressing toward its stated goal of phasing down coal. This transition represents a large-scale reduction of emissions, which should translate into less extreme weather patterns, such as droughts and floods. Replacing coal power will also generate direct health benefits for those living nearby, as coal presents a wealth of health risks to air quality. Reducing coal emissions also means less melting of polar ice caps and a slower rise in ocean levels. Coal emissions ultimately contribute to the warming and acidification of oceans. Which of these factors would most effectively convince you to support nuclear energy projects in your area? Lower energy bills Safety and reliability More local jobs Environmental benefits Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
4 hours ago
- Yahoo
Wall Street's advice after Nvidia hits historic $4 trillion market cap: BUY
A day after set a new record by reaching a $4 trillion market cap, at least three Wall Street analysts issued new reports that rated the stock a buy, according to Bloomberg data. The bulls pointed to Nvidia's role as the premier chipmaker and the fact that compared to its fundamentals, the stock is still trading at a fair price. Wall Street is betting Nvidia can make stock market history again. After the chipmaker powered its way to a $4 trillion valuation, the first company to ever reach the milestone, analysts still see room for the stock to grow. The upside for Nvidia, according to its biggest bulls, remains incomplete. There are more returns to be had, they argue. Nvidia is one of the most beloved stocks by investors. It seems to have ridden the stock market exuberance of AI more than any other company. Investors continue to reiterate its strength as the purveyor of the best AI chips that hyperscalers like Meta, Alphabet, and Amazon use. Of the 79 analysts who currently follow Nvidia, 69 rate it a buy, according to Bloomberg. That's good for an 87% buy rating among analysts. Only 11 rate it a hold. And just one lone holdout lists it as a sell. On Thursday, after Nvidia hit the $4 trillion mark, some analysts were unfazed at the prospect that perhaps the chipmaker had reached its stock market peak. At least three analysts published new reports rating the stock a buy, according to Bloomberg data. Goldman Sachs, Keybanc Capital Markets, and Bocom International, the subsidiary of Hong Kong's Bank of Communications, all listed Nvidia as either a buy or an overweight. Their price targets ranged from $175 to $190, implying growth of between 8.1% and 17.4% for Nvidia stock from the $161.84 per share at the time of publication. Despite Nvidia's valuation, its fundamentals don't point to an expensive or overpriced stock, according to Paul Meeks, chief investment officer at 17 Asset Management. 'The stock has come far, but sales, earnings, and cash flows have come farther,' he told Fortune. Indeed, Nvidia has delivered outstanding financial performance. Its latest quarterly earnings saw it bringing $44 billion in revenue, a 69% increase from the prior year, according to company filings. Its margins remain plump, coming in at 60% over the same quarter. Its balance sheet remains rock-solid with $111 billion in total assets compared to $32 billion in total liabilities in its 2025 fiscal year. Goldman was undeterred by Nvidia's recent record valuation. It called worries about Nvidia's sky-high price 'peak concerns' in an analyst note published on Thursday. 'We believe Nvidia will remain the primary beneficiary of the ongoing AI infrastructure buildout,' Goldman semiconductor analyst James Schneider wrote. Analysts built their bull case for Nvidia around the fact that it remains the market leader in all the components used to develop AI systems and that the market for all of those products will only grow over the next few years. Nvidia has also spent the last couple years diversifying its offerings. 'Nvidia's well beyond the chips,' Meeks said. The company also has a suite of software and networking gear used for things like gaming and developing robotics. Nvidia's believers also often point to early signs that AI companies are finally starting to monetize the technology. Once that happens, demand for Nvidia's products will only grow. AI firms have already started to push further into the consumer tech market. Perplexity released an AI-powered web browser and OpenAI is slated to launch one soon. Major cloud service providers like Amazon and Alphabet will also start to incorporate more AI tech into their services which will only further boost Nvidia's sales, according to longtime tech bull Dan Ives. 'The impact of the AI cycle on consumer Internet will be massive and it will start with the cloud service divisions,' Ives wrote on Thursday. '[Amazon and Alphabet] acquire AI-capable chips, build AI-capable service offerings, and sell those services into their respective installed bases.' But Nvidia's fate is ultimately linked to that of its biggest customers. As they continue to spend, the stock will continue to soar. The day that they pull back their billions in AI investments is the day Nvidia's gets 'crushed,' Meeks said. 'Only thing that would cause a bloodletting here is if we got a sense that major AI spenders pull back,' he said. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
5 hours ago
- CNBC
Cramer's week ahead: Earnings from JPMorgan, Netflix, Goldman Sachs and PepsiCo
CNBC's Jim Cramer on Friday told investors what to follow next week as earnings season kicks off, highlighting reports from JPMorgan, Netflix, Goldman Sachs and PepsiCo. "Once we process the new tariffs, we've got a ton of earnings reports coming next week, so you better keep your eyes open," he said. Tuesday brings earnings from financial giants JPMorgan, Wells Fargo, Citigroup and BlackRock, and Cramer said he'll be waiting to hear whether there has been any slowdown in spending or pick up in loan losses. While he said JPMorgan is "the star of the show," he also cares about Wells Fargo, which is no longer subject to a punitive asset cap. Cramer predicted Citigroup's report would be well-received, but he said BlackRock might tell "the most exciting story." The Labor Department will release the consumer price index report on Tuesday, Cramer added, an important metric for the Federal Reserve when it makes decisions about interest rates. On Wednesday, Goldman Sachs and Morgan Stanley are set to report, and Cramer said he's optimistic both outfits will post strong quarters as mergers and acquisitions heat up. He said there could be "another round of semi buying" if semiconductor capital equipment company ASML releases a solid report. Bank of America and Johnson & Johnson will report on Wednesday as well. Cramer said Bank of America has put up consistently good earnings and suggested the stock was cheap because Berkshire Hathaway has been selling shares. Cramer said the pharmaceutical giant still has litigation hanging over its head. Retail sales figures will come out Thursday, and Cramer said he's worried about a slowdown as political chaos affects consumers. Abbott Laboratories, PepsiCo and Netflix are set to report Thursday. Cramer said Abbott's quarter tends to be "misinterpreted in a negative way," saying the healthcare name is one of his favorite companies. Cramer called PepsiCo "too cheap relative to its growth rate," and he noted different factors that could be weighing on the stock, like the rise of GLP-1 weight loss drugs and scrutiny on junk food from Health and Human Services Secretary Robert F. Kennedy Jr. Cramer said he bets Netflix will report a great quarter, but he said the bar for the streaming giant is high. On Friday, American Express, 3M and Charles Schwab will report earnings. According to Cramer, American Express tends to sell off even when the report is good. The industrial sector has been doing well lately, and Cramer said 3M might report one of the best quarters of the group. He was also optimistic about Charles Schwab, but said "the short-sellers like to come out and color the opening of trading when Schwab opens," advising investors to be careful before they buy. Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club Charitable Trust owns shares of Wells Fargo, BlackRock, Goldman Sachs and Abbott Laboratories.
